Keppel Secures Deepwater Upgrade Contracts from Transocean

Keppel FELS and Keppel Verolme BV have each clinched a contract from Transocean Inc. worth a total of US$140 million.

Each contract is for the upgrading of a Sedco 700-series semisubmersible drilling rig. The two Keppel yards reap substantial synergy with respect to engineering, purchasing and pre-fabrication works for the project.

"Keppel is delighted to be selected as the partner of choice for Transocean in the upgrading of the two floaters. Leveraging our integrated network of yard facilities and expertise, we are confident that the projects will be well executed on time, on budget, for our valued customer," said Mr Tong Chong Heong, Managing Director & Chief Operating Officer of Keppel Offshore & Marine (Keppel O&M).

Chartered to a Shell affiliate, the 700-series floater to be renewed and upgraded at Keppel FELS in Singapore will be delivered in May 2007.

Upgrading of the second rig at Keppel Verolme in Rotterdam is scheduled for completion around October 2007.

The scope of work for both vessels include converting them to full Dynamic Positioning (DP) capacity capable of drilling, completion and work-over in up to 2,000 meters of water depth in moderate environments. This covers the addition of thrusters, DP control and blow-out-preventer control systems, increased power plant, riser tensioner and mast capacities, as well as increased variable deck load, hull repair and overhaul of drilling equipment.

A regular and valued customer, Transocean has awarded the Keppel O&M group several significant projects, and one of these is the construction of Trident 20 jackup rig. Completed in 2000, Trident 20 made history as the first international class rig to be built in the Caspian Sea.

Apart from the upgrading of the two 700-series floaters, the Keppel O&M group continues to repair various Transocean's rigs. Two of the latest repair jobs involve the modification of jackup rig J T Angel by Keppel FELS and the project, Transocean Marianas, by Keppel AmFELS. The latter, was completed in March 2006 to the satisfaction of the customer.

Keppel FELS, Keppel Verolme and Keppel AmFELS are wholly-owned subsidiaries of Keppel Corporation through Keppel O&M, a leader in offshore rigs, shiprepair and conversion and as well as specialised shipbuilding. Keppel O&Mís near market, near customer strategy is bolstered by a global network of 17 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry.

Keppel Verolme shipyard spans over 54 hectares in Rotterdam's Botlek area. It has three drydocks, and its largest dock has a capacity of up to 500,000 dwt. Measuring 90 meters wide with deep water in front, Keppel Verolme has the widest graving dock in Europe and is able to undertake repair and conversion of some of the world's largest semisubmersibles.

Transocean Inc. is the world's largest offshore drilling contractor with a fleet of 90 mobile offshore drilling units. The company's mobile offshore drilling fleet, consisting of a large number of high-specification deepwater and harsh environment drilling units, is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business.

The contracts are not expected to have material impact on the NTA or the earnings per Keppel Corporation share for FY2006.


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